Bid Rounds – A Global Roundup in 2018 – Q1 2019

Over the past 18 months there has been a surge of bid round activity around the world. In fact, some 85 countries have either launched a bid round (more than 105) or held open-door policies (Figure 1). This activity covered approximately 1.6 million sq km on offer representing a total of 3,569 blocks located both onshore and offshore, including deepwater areas (Figure 2). Out of a total of 49 countries offering bid round acreage, those which dominated in the period included: Australia, UK, Denmark, Mexico, India, Argentina, Brazil, Ukraine, Poland and Croatia.   Figure 2 – Past bid round activity compared to oil price The trends observed in acreage offers in the period 2018 – Q119 are: Very busy bid round activity Regime changes significant Increases in flexibility of regime choice Countries continue to issue incentives and disincentives Many countries continue to offer deepwater terms Gas terms remain more lenient reflecting higher costs and marketing obstacles Typically, no terms specific to unconventionals (shale/CBM) Bans on exploration became more prevalent due largely to opposition to fossil fuel developments by environmental lobby groups Increased instance of countries having first bid round One of the most marked changes is the emergence of the… continue reading

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